Remember this Wheat post?

HERE

Well look at wheat now.  The day after this post wheat DID pull back from its close of 548.25 for two days to 534.25; a slight pull back of about 2.6%. 

But what happened after that? As I stated in my previous post, sky was the limit and did wheat futures ever shoot up, all the way up to 627, a rise of 17.4%.

But now I'm seeing a nice time to play the reverse position.

First of all, the markets are recovering, and one of the things that makes commodities such a great investment is their diversification effect, in that they have tended to move inversely or uncorrelated to equities in the past.  The markets going up is in no way a sign that so will commodities, and if anythign its pointing towards a weakening of the market; many commodities had a fairly weak day today.  Wheat is currently in heavily overbought levels, and has been sitting up there for quite some time now; not to mention volume has slowed down these past few days also.  A touch right here on my white trend line could result in a nice downside play in shorting the futures and/or buying puts. 

I'm going to indulge, so we'll see how my move pans out.

-Krames

Some charts.....

DPS

GSS

M

NLST

/QM light sweet crude futures

S

-Krames

Just a couple quick charts

M- Macy's

NLST - Netlist Inc.

Will post something later most likely.

-Krames

Dr. Pepper, you make the world taste better

Posted a DPS chart a little while ago, and it seems to have breached the upper resistance ever-so slightly.  The alltime high of this stock was previously 38.93, and it currently sits at 38.54.  In increase of only 0.40, or 1.04% would bring it to new key high levels. 

We'll see what happens, I'm feeling a nice pop-up.

-Krames

Today in review.

Wheat pulled back slighty, /ES continued on up though slowing down its haste. 

Volume of trading on /ES was lower than the norm, only reaching 1.42MM at this current time for the day.  Being the summer, many people are on vacation and friday being the start of the weekend, I think you can attribute some of that to this.  The Relative Strength Index has slowed down its momentum and is sitting at the midway point with a rounded off top due to the almost neutral day of trading. 

Keep an eye on wheat though, a good entry may be coming up but not before a little more of a pullback.

Enjoy the weekend.

-Krames

Keep this in mind

Interesting CotD chart.

-Krames

Might be interesting to watch...

Ingram Micro Inc. is the name of the company, could have a nice upside soon.  It seems to have some pretty reliably consistent support and resistance lines.

-Krames

Natural Gas a short term buy.

Natural Gas took a hit towards the downside after estimates being under the actual.  I feel this is a good time to buy for about a week period hold. 

This week has been HOT; it was not fun takign the subway and walking into work on Tuesday in a suit, when temperatures hit 104 degrees.  With hot weather, comes more use of airconditioning and other cooling devices.  What powers these - natural gas.  The results of this heat will have a lagged effect to the market and will appear next week.  Keeping this in mind, take a look at the open interest which has shown signs of decline.  Less supply with more demand should push up these prices and made a nicely profitable long trade.  With the down day today, the price should be rebounding up regardless, so why not get in on this movement at a cheaper price?  Just placed an order myself.

- Krames

Wheat pulling back tomorrow...

Wheat had another nice upday, but I feel like a slight pull back is still in order.  Lets take a look at the chart.

 

Volume has recently higher than the norm, showing increased interest in the market on this ag.  This, in combination with the overbought levels of 76 on the RSI, solidify my predicitions of a minor pull back to the previous levels of resistance.  After that, sky could be the limit. 

-Krames

Market making strides?

Dow  has made it past 10,000 (again) with a nearly 300 point upday, and the S&P popped up a nice 32 points giving me solid gains on my /ES position.  Seems that trendline convergence I posted here seemed to be showing somethign after all.

Now if you look at commodities at all, you would have noticed the way wheat futures have sored recently; is it past key levels? Wheats rocketing up in the recent trading days seems to have passed  it easily through points of resistance from the past 5 months, as well as a fairly long term downward trending channel. 

Is now the time to buy?  If you ask me, not quite yet.  The volume in these recent days looks to be a tad higher than the norm, and if you take a look at the RSI indicator it shows signs of overbuying.  I think we might see these wheat futures possibly rise a tad more, but fall back its previous resistance levels of 512-520.  I do think that these will as a result shift to support, and promote further uptrending for this Ag Commodity.

- Krames

Bought BP

on 7/1/2010 @ 29.94

/ES Trend Line Convergence

Has the market hit a key point of multiple resistance lines, and could it be in for a rebound up higher?

Looks like it.  Voice your thoughts in the comments.

Head and Shoulders

Head and Shoulders.

CLNE

Investopedia - "The "head-and-shoulders" pattern is believed to be one of the most reliable trend-reversal patterns."

Is the market looking at further sell offs to come?

/ES

Could bounce off the channel trend line up, or crash right on through... My guess is going through the bottom with all the hype over the "death cross" (50 and 200 day moving averages crossing, which dosent happen often), and all of negativity investors have in the market right now. 

S&P 500 E-Minis

Interesting things may be approaching.  With today being the weeks close we'll see how the markets open after a long weekend.  But lets see how they close today first.

-Krames

Increased Upward Pressure

These increased upward pressure towards the previous highs is signaling to me a movement upwards sometime soon...

Buy Opportunity

DPS - Dr. Pepper Snapple